Starting a business is a lot of work. Aside from fine-tuning your business idea, setting up your business space, building inventory, and planning your marketing strategy, you also need to consider your legal obligations.
Paying business taxes is one responsibility you don’t want to neglect, especially if you’ve chosen a business structure that is not a simple sole proprietorship.
Hiring an accountant is an excellent way to take some of the pressure off of handling your finances. However, it does come with certain costs you need to consider and be ready for.
Does Every Business Need an Accountant?
Every business could benefit significantly from hiring a Toronto tax accountant, as they help people avoid the dreaded Canada Revenue Agency (CRA) audit. In July this year, 61,000 audits in Toronto and Vancouver resulted in 13 criminal charges.
Hiring an accountant would make your work much more manageable. But does your business need one?
You could go at it alone if you are highly knowledgeable about accounting and tax requirements. However, having an accountant would be necessary as your business grows and your responsibilities increase.
Pros of Hiring an Accountant
Ask any accountant whether their services are necessary for businesses, and they would likely say “Yes.” This may partly be due to self-interest, but they’re not wrong. Below are some advantages you could expect from working with an accountant.
Poring over invoices and tax packages to comply with tax regulations is difficult, especially if you have other matters to deal with when running your business.
Having an accountant to handle your financial and tax obligations frees up a significant amount of your time, allowing you to attend to more urgent tasks.
Allows for Streamlined Processes
Aside from crunching numbers for you, having an accountant around allows your business to fall into a better financial routine. This is especially when handling year-end tax processes and calculating financial projections.
Accountants could also help your company prepare for loans or grants you plan to apply for, ensuring the business’s financial well-being.
Provides Peace of Mind
Finding the right accountant to work with helps you rest a bit easier, especially if you’re not too well-versed in business bookkeeping, accounting, and tax compliance.
Making mistakes in tax and accounting could be costly, so having an expert on your side allows you to gain peace of mind.
Costs of Hiring an Accountant
Working with an accountant offers several advantages, and many businesses benefit significantly from their services. However, their presence also requires specific accommodations you need to consider before taking them on.
Accountants perform a specialized service and expect to be paid accordingly. Paying your employees fairly is only fitting, and accountants are no exception.
The average annual salary for accountants in Toronto is around $59,292. However, other factors could also come into play, such as the accountant’s experience and the types of services you require. Therefore, you will need to factor their salary into your company budget.
No Guarantee Towards Perfection
Despite their extensive knowledge, accountants are still people. It is still possible for them to make mistakes.
To help remedy this, stay updated and involved in whichever task they may be doing, and double-check the figures they present.
Finances and tax obligations are fundamental aspects of running a business. They could make the difference between your company’s success and failure. Despite incurring some costs, having an accountant on board helps ease this burden and ensure your business’s financial well-being in the long run.
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